Why can Vietnam take away production orders from brands such as Nike and Adidas from the Chinese market?
Since yesterday, many friends said that they could not find a list of cooperative manufacturers producing KN95 in the white list of the US EUA, and clicked on the official US EAU authorization Check the list link to check the cooperative manufacturers, and find that the original 74 whitelists suddenly only have 14 left!
Starting from the US EUA authorization in early April and ending As of April 26, 74 Chinese KN95 manufacturers have entered the US EUA whitelist. Of course, this also means that KN95 masks produced by manufacturers in this whitelist can be allowed to enter the US market.
On the contrary, according to market news on April 16, Vietnam is planning to provide the United States with 200,000 locally produced medical masks; previously, Vietnam The first batch of more than 450,000 protective suits has been shipped to the United States for use by health and medical department staff in the latter’s fight against the COVID-19 epidemic. It can be seen that now that the global shortage of masks has intensified, Vietnam has also ushered in greater development opportunities.
“Made in Vietnam”
Faced with the background of the global economic downturn and the outbreak of the new coronavirus Now, China’s title of “World Factory” is under serious threat.
Recently, major suppliers from around the world are A large number of factories in China have been closed one after another, and they are moving closer to building factories in Southeast Asian countries. In the field of clothing, “Made in Vietnam” is now quietly occupying the market of “Made in China”. Many people even speculate that Vietnam is likely to become the next “world factory.”
In 2009, Nike’s Vietnam foundry completed a comprehensive surpass of China’s production capacity; in 2012, Adidas’s last mainland China factory closed in Suzhou; in April 2018 In March, Uniqlo announced that China’s production capacity would be transferred to Southeast Asia, and Vietnam would bear 40% of total production.
So, what ability do Vietnamese garment factories have to take away Nike and Adidas from our Chinese market? What is the reason that attracts so many suppliers to invest in setting up factories?
Direct reasons: sufficient labor and low worker costs.
Vietnam currently has about 30 million young adults. While my country’s population has an obvious aging trend, Vietnam’s population is relatively young. Vietnam will maintain this advantage for a long period of time, thereby increasing the competitiveness of its labor force. Labor costs in Vietnam can be nearly 50% cheaper. The average monthly salary of production workers in Vietnam is US$216. Moreover, according to World Bank data, Vietnam has one of the countries with the largest labor force in Southeast Asia.
Answers from a set of data:
First of all, according to the Vietnam People’s Daily, there are already 6,000 textile and garment companies accounting for 15% of Vietnam’s total exports, making Vietnam’s textile and garments one of Vietnam’s leading economic industries. , and made Vietnam one of the three largest textile and apparel exporters.
Secondly, public information shows that Huafu Vietnam enjoys corporate income tax reductions and exemptions, and is exempt from corporate income tax for four years starting from the first year of profit and for the subsequent nine years. A 50% reduction in corporate income tax is levied. At the same time, there is no value-added tax in Vietnam.
Also, Vietnam’s average annual export volume of textiles and clothing exceeds US$30 billion, accounting for 11% of global clothing exports; and its main exports are the United States, Japan, South Korea, and the United States account for 51%.
It seems that Vietnam’s clothing industry should not be underestimated!